Renaissance Financial Holdings, one of Zimbabwe’s biggest finance institutions could have faltered off due to low business after manufacturing companies faced viability constraints only to be brought back into business by the Reserve Bank of Zimbabwe (RBZ) which intervened by ploughing funding into the manufacturing sector through the Basic Commodities Supply Side Intervention. Injection of this funding into manufacturing concerns increased Renaissance’s operations hence its capacity to raise the company’s profit after tax to Z$35 trillion for the year ended December 31 2007.

The profit figure attained last year relatively represents a significant growth in profit margins as compared to the previous year’s profit of $9.2 trillion.

But the fact that a lot of funding had to be ploughed into the country’s manufacturing sector means that the company’s performance was a bit subdued as operations could have halted had the central bank not intervened.

However, Renaissance says: the strong performance was on the back of good contributions by all (of its units). Return on average shareholders’ funds at 152 percent was pleasing, said the company’s chairman, Professor Chetsanga.

Of the operating business environment, Chetsanga said: 2007 was characterized by high levels of inflation, significant money supply growth, shortages in foreign currency and negative real returns on the money market.

Chetsanga is surprisingly pleased by the company’s performance during the period: In this difficult operating environment, the group has performed well and the results for the period were commendable, he said.

Renaissance Merchant Bank: the bank’s performance was outstanding with a profit after tax of $3.4 trillion, up from 1.8 trillion for the previous year, said Chetsanga of the bank’s performance. He added during the period under review, the bank’s focus was on the creation of non funded cash income.

Renaissance Securities: performance of the stock broking unit was exceptional, as the stock market maintained a bull run for the most of the year under review, the company said of this subsidiary.

The statement added that this unit posted a profit after tax of $559 billion, for the period under review.

The other firms under Renaissance also performed relatively well but the profits that they posted, ranging from 22 billion to 55 billion meant that these sectors of the company should seek to better their performance fortunes in the coming comparative period to end December 31 2008.

---

Share This Story On:

Average user rating